End of Service Benefits Calculator – UAE

When you leave your job in UAE, understand your exact rights. Use our simple calculator and estimate gratuity payout according to UAE Labour Law – whether you are resigning, completing a fixed-term contract or facing termination. This tool gives both employees and employers clarity on end-of-service entitlements, with accuracy, transparency and compliance with local regulations.

End-of-service benefits, commonly known as gratuity, are a mandatory payment that employers make to their employees when their contract ends. According to the UAE Labour Law (Federal Decree-Law No. 33 of 2021), every worker who has completed at least one year of continuous service receives a financial settlement upon leaving the job.

This amount is calculated on the basis of the employee’s basic salary, years of service, contract type (limited or unlimited), and reason for exit (resignation, termination, retirement, etc.). Its purpose is to safeguard workers’ rights, ensure fairness, and recognize their years of service.

According to the law, gratuity is separate from other benefits such as leave salary, unpaid wages or allowances. Employers cannot withhold or deduct gratuity unless there is proven misconduct under the Labour Law.

Every employee is entitled to gratuity under specific conditions in UAE. The key factors affecting eligibility are:

• Length of service: At least one year service is required.
• Reason for leaving: Voluntary resignation, contract completion or termination.
• Contract type: Fixed-term vs. unlimited contract.
• Special cases: Women’s resignation in case of marriage, medical incapacity or force majeure.

Resignation rules under UAE law

• Less than 1 year → Not eligible.
• 1–5 years → 21 days of basic wage per year of service.
• More than 5 years → 30 days of basic wage per year, capped at 2 years’ total salary.

This ensures fair treatment for both short-term and long-term employees while setting a maximum cap to prevent excessive liabilities for employers.

The UAE Labour Law provides a clear formula for calculating gratuity:

1. For service between 1 and 5 years → 21 days’ basic salary per year.
2. For service over 5 years → 30 days’ basic salary per year (beyond the first five years).
3. Maximum entitlement → No more than two years of total salary.

Example Calculation

• Basic Salary: AED 8,000
• Years of Service: 7 years

Step 1 – First 5 years: 5 × (21 ÷ 30 × 8,000) = AED 28,000
Step 2 – Next 2 years: 2 × (30 ÷ 30 × 8,000) = AED 16,000
Total Gratuity = AED 44,000

If the employee resigns, adjustments are made based on exit conditions under UAE law.

Years of Service	Entitlement	Notes
Less than 1 year	None	Not eligible
1–5 years	21 days of basic wage per year	Pro-rata
More than 5 years	30 days of basic wage per year	Capped at 2 years’ salary
Termination for misconduct	None	Employer not liable

• Quick & Accurate – Get your gratuity estimate immediately.
• Legally Aligned – According to UAE Labor Law updates.
• Employee & Employer Friendly – Transparent for both.
• Covers All Scenarios – Resignation, retirement, termination or contract completion.

Our tool helps you plan your finances, negotiate settlements, and avoid disputes.

This calculator is for informational purposes only. Actual entitlements may vary according to your employment contract, company policy, deductions and legal exceptions. For official advice, employees should consult the Ministry of Human Resources and Emiratisation (MOHRE) or a licensed legal professional.